Do I have to settle for less than I owe?

UPDATED: Aug 23, 2017

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Do I have to settle for less than I owe?

Full coverage insurance has comprehensive and collision for $25,000 they offered $11,000 for my loss I

owe $18,000. Should they pay the vehicle off?

Asked on August 23, 2017 under Accident Law, Arkansas


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 5 years ago | Contributor

They do not need to pay the vehicle off; all an insurer (or the at-fault party) would owe at most is what the vehicle was worth at the instant before it was damaged, given its age, make, model, mileage, etc.--i.e. it's "blue book" value. Compensation is based on value, not price to purchase. If you are getting blue book value, that's all you are entitled to; if offered less than that, you don't have to accept it, but could elect to proceed with a lawuit (vs. the at fault driver, if there is one; or againt you own insurer, if they are not offering you the full then-current fair market value).

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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